Real estate and real estate finance as a research field—an international overview

We present a citation-based analysis of the most important journals on real estate and real estate finance over a time period from 1986 to 2010. For each year, those three articles with the highest number of citations according to Google Scholar are identified. A thorough analysis of all 75 selected articles reveals that the focus of interest has been on (1)empirical research, (2) mainly using data ofresidential real estate, with (3) the primary objective of evaluating real estateinvestment until the midst 1990s. In order to derive reliable risk-return relations for real estate investment, (4) asset pricing as the main task of real estateappraisal is in the centre of attention, too. Appraisal issues have relatively gained importance for the last fifteen years in comparison to investment issues. Interdisciplinary aspects and sustainable issues are only very rarely integrated in appraisal methods, the focus is primarily on maximizing economic returns. Therefore, our citation analysis confirms that the Financial Management Approach of Dasso and Woodward (1980) is the predominant approach particularly in the United States. Our findings regarding our basic sample of articles are cross-checked by several robustness tests. For future research activities, it seems to be quite promising to focus on the one hand on interdisciplinary aspects and on the other hand to contribute to the theoretical foundation of real estate with the aim of developing a common body of knowledge.     

Socio-economic patterns of sport demand and ageing

Due to the demographic situation in nowadays societies, physical activity, and sport expenditure have to be analysed from a demographic as well as socio-economical perspective. This means that determinants such as age, gender, nationality/ethnicity, income, time, educational level, profession, and social status have to be taken into account. However, when comparing the various studies, the different methods of analysis and different operationalisation of variables have to be considered. This is in particular vital investigating age. Whilst cross-sectional studies point out that physical activity generally decreases with increasing age, longitudinal analyses come to different results. Previous studies indicate that pertaining to gender more men take part in sports than women. However, considering period and cohort effects, recent longitudinal studies showed that women participate more in sport than in the past. Besides, it was found out that men generally tend to spend more money on sports than women do. A further finding is that the educational level influences physical activity positively. Research revealed that income had a positive impact on both, physical activity and sport expenditure.     

How an aging society affects the economic costs of inactivity in Germany: empirical evidence and projections

Background

Aging societies represent a major challenge for health care systems all over the world. As older people tend to be more physically inactive, economic costs of inactivity are likely to increase notably. The present study aims to investigate this relationship between an aging society and economic costs of inactivity using the example of Germany.

Methods

Using data from the German Socio-Economic Panel, this study applied the comparative risk assessment method developed by the WHO to estimate the direct costs of inactivity for the period 2001–2013 differentiated by gender-specific age-groups (15–29; 30–44; 45–64; 65+). Based on population statistics predicting the aging of the German population for the years 2014–2060, this research projects the development of future costs of inactivity and potential effects of interventions promoting physical activity among the German population.

Results

The results reveal an increase in the level of physical activity during the observed period (2001–2013) which compensated the negative effect of aging and resulted in a decline of inactivity costs. The projections for the years 2014–2060 indicate a constant increase in direct per capita costs until 2060 because of an aging society. Scenarios indicating how a short-term reduction of physical inactivity impacts costs of inactivity reveal the crucial role of the oldest age-group in this context.

Conclusion

The findings indicate that the aging of the German population demands further actions and initiatives to promote physical activity, especially for the oldest age-group.

     

A note on corporate valuation using imprecise cost of capital

We compare the estimator for discount rates according to Elsner and Krumholz (EK) (J Bus Econ 83:985–1014, 2013) to the approach propagated in Breuer et al. (BFM) (Eur J Financ 20:568–594, 2014). While the EK estimator is derived analytically and implies a correcting factor by which the original arithmetic mean estimator is adjusted, the BFM approach is based on a simple ad hoc modification and recommends to truncate the time horizon for cash flow projection up to about N = 30 years. The BFM approach is reasonable, as the most relevant bias problems are implied by terminal value computations. Rather surprisingly, for our main simulation analysis based on real-world capital market data for 19 countries over the period 2008–2012, the EK estimator turns out inferior to the BFM approach. However, results depend on the kind of bias measure and on the issue of whether using total historical returns or only excess returns for evaluation purposes. In any case, our findings imply that a rather straightforward rule of thumb for valuation may be of value to practitioners: ‘stick to the simple arithmetic mean estimator without terminal value computation, but consider future cash flows up to a time horizon of about 30 years’.